Setup for shorting
Every market is moving within neverending cycle: …balanced -> unblanaced -> balanced -> unblanaced -> balanced -> unblanaced -> …
Balanced markets cover 80% of time. Trending markets last 20%.
It is hard to understand, but many cycles are developing at the same time on different timeframes. Learn more in Peter Steidlmayer original materials.
The zones of balances can be detected on chart as they form the triangle shape. The zones of unbalance forms trending movements (pumps and dumps).
The goal of a trader is to find low-risk opportunities. Where do they hide? Think from the point of view of market balances. From my point of view - the rational answer is:
- sell at the top line (resistance) of the new balance after the previous balance was broken down
- buy at the bottom line (support) of the new balance after the previous balance was broken up
Here is a pair if the #BTC chart.
On the top side - 30m bars, it shows the triangles of balances.
On the bottom side - clusters tick chart. It shows the details and confirmation to open the trade. A lot of green clusters - minor buying culmination. Some sellers are knocking out amid triggering their SLs. Some buyers enter breakout longs. Soon, they both will find they made a mistake. This is your setup for shorting.